7. Source: From NGOs to FFIs in Microfinance Services: Conversation Road Map and its challenges – Comparative study of nine Eastern European MFIs A. The need behind ‘NGOs as Alchemist for the poor’
8.
9.
10. MF services were mainly provided by non-profit organizations aiming at transforming the lives of poor people and enabling them to develop and sustain income-generating and job-creating enterprises Main goals: outreach, financial viability and impact on their beneficiaries Constraints: legal barriers and governance limitations Solution: set up as regulated/formal MFI Outcomes: access to capital, capturing savings, reducing donor dependence and expand client outreach Serving clients not beneficiaries Funding problems through investor not donors B. Advantages and Disadvantages of Credit Granting NGOs
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31. Source: From NGOs to FFIs in Microfinance Services: Conversation Road Map and its challenges – Comparative study of nine Eastern European MFIs F. Other successful examples
32. Literature Schmidt, R.H., C.P. Zeitinger (1996): Prospects, Problems and Potential of Credit-Granting NGOs, in: Journal of International Development, Vol. 8, No. 2, 241-258. Glosser, A. (1994): The Creation of BancoSol in Bolivia, in: Otero, M., E. Rhyne (eds.):The New World of Microenterprise Finance. Building Healthy Financial Institutions for the Poor, Chapter 12, Kumarian Press. Lauer, K. (2008): Transforming NGO MFIs: Critical Ownership Issues to Consider, CGAP, Occasional Paper, No.13, from http://www.cgap.org/gm/document-1.9.4213/OP13.pdf Fernando, N.A. (2004): Micro Success Story? Transformation of Non-Government Organizations into Regulated Financial Institutions, ADB Aghion, Beatriz A. and Morduch, Jonathan: The Economics of Microfinance, the MIT Press, 16-23. From NGOs to FFIs in Microfinance Services: Conversation Road Map and its challenges – Comparative study of nine Eastern European MFIs Web Banco Solidário http://www.bancosol.com.bo/ References
33. Thank you for your attention ! University Meets Microfinance Planet Finance www.planetfinancegroup.org [email_address] www.universitymeetsmicrofinance.eu www.ies.org.pt